298: How Tony Lost $100K on ONE Real Estate Deal (AVOID These Critical Mistakes)

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 24 June 2023

⏱️ 53 minutes

🔗️ Recording | iTunes | RSS

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Summary

Losing $100K on one real estate deal!? Is there any coming back from that kind of loss? Unfortunately, real estate investing is not always sunshine and rainbows. Every successful investor has had their fair share of failures. By learning from some of our mistakes, our hope is that new investors won’t have to make them! Welcome back to another episode of the Real Estate Rookie podcast. Today, Ashley interviews Tony about one of his most recent deals that went south. Ultimately, Tony ended up losing a whopping $100K on the deal. This kind of loss would cause many people to throw in the towel and quit their real estate journeys. Instead, Tony ate the loss, learned some important lessons, and got back up on his horse. If you’re afraid of losing money on a real estate deal, allow Tony’s mental fortitude to encourage and inspire you to keep going! In this episode, he shares a handful of invaluable lessons—including why it’s so important to manage the timeline of a deal, why you should always take a pre-approval with a grain of salt, and how diversifying investments across different markets can help lower your risk! In This Episode We Cover Finding your real estate niche and building a strong financial foundation Managing the closing timeline (and saving a fortune in holding costs!) The importance of purchase agreements and earnest money deposits The subjectivity of appraisals (and when you should challenge them) Why you should NEVER treat a pre-approval as gospel What you should know before becoming a private money lender And So Much More! Links from the Show Find an Agent Find a Lender Ashley's BiggerPockets Profile Ashley's Instagram Tony's BiggerPockets Profile Tony's Instagram Real Estate Rookie Facebook Group Join BiggerPockets for FREE Making $71K on ONE Deal After 5 Failed House Flips and Six-Figure Debt The Difficult Path to Wealth: Losing Money on Your First Real Estate Deal w/ JL Collins 4 Important Steps to Bounce Back After Losing Money on a Deal Check the full show notes here: https://www.biggerpockets.com/blog/rookie-298 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email: [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is real estate rookie episode 298. You guys a hundred thousand dollars
0:08.6	100,000 dollars. Oh, it's just like a paper loss to 100k. No, this is like Tony
0:13.0	Wiring a hundred thousand dollars from a business bank account into our lenders account to be able to cover this
0:18.5	It definitely hurts
0:20.5	My name is Ashley Care, and I am here with my co-host Tony Robinson and welcome to the real estate rookie podcast
0:27.3	We're every week twice a week. We could bring you the inspiration motivation and storage need to hear to kick out your investing journey
0:32.4	And today we're switching it up on the real estate rookie podcast
0:36.3	Ashley is my therapist for today, and I'm laying down on the therapist couch, and I'm opening up my heart and my soul and my vulnerabilities
0:43.9	Around a recent deal that went terribly terribly wrong, and he says he's the one laying down on the couch
0:49.5	So it's actually me cozy with a comfy pillow
0:52.2	I'm writing it in a chit for story time with Tony today
0:58.4	So we are going to all learn some important lessons today
1:03.3	first of all, why you should always get things in writing and
1:08.2	What earnest money deposit can actually protect you from or provide some kind of security, I guess and then
1:16.9	Talk about pre-approvals. So have you gone and gotten a pre-approval for a loan?
1:20.9	Have you sold a property where somebody came and brought their pre-approval?
1:24.9	What does a pre-approval actually guarantee?
1:29.1	Tony shares with his experience with that and then also the timeline of
1:35.0	owning real estate from
1:37.5	acquisition to
1:39.1	Disposition of the property and how important that is in today's market
1:44.4	So you guys I'm sure you've seen the headlines. You've seen everything in the news. You've seen on social media
	...

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